Understanding how companies can free up capital requires a comprehensive approach across all energy resources, Rovshan Najaf, president of the State Oil Company of the Azerbaijan Republic (SOCAR), said during a panel discussion at the World Economic Forum 2026 (WEF 2026), Report informs.
He stated that in the context of decarbonization, it is important to delve into the details and clearly differentiate between technologies.
"What worked under the IRA (Inflation Reduction Act) is primarily applicable to wind and solar power, batteries, and electric vehicles. However, even the IRA and other support measures have not yet worked for green hydrogen and green ammonia. Success requires different components," the SOCAR CEO noted.
He emphasized that any initiatives should have a commercial justification.
"If you look at funding trends, the majority of funds go to renewable energy-wind, solar, batteries, and electric vehicles. Significantly less funding is going to carbon capture technologies, green ammonia, green hydrogen, and methane emissions reduction, as they don't yet have a sustainable commercial model. There should be economic benefits and access to financing. However, for technological breakthroughs and the emergence of affordable solutions, as has happened with solar and wind energy, where technology costs have fallen significantly, innovation and capital are necessary. Commercial banks don't finance unprofitable projects," he explained.
According to Najaf, individual companies, including energy companies, are willing to play a vanguard role, but in this case, they must strictly prioritize.
"In the current environment, looking at the dynamics of the last year, oil and gas are once again becoming key. As CEO, I have to make capital allocation decisions, and, of course, oil and gas remain a priority. In this situation, I have no available funds to invest in non-commercial but potentially breakthrough technologies, unless there is external financing for oil and gas projects. At the same time, I cannot attract funds from international financial institutions or most European commercial banks for oil and gas projects, forcing me to rely solely on my own resources. If these funds are allocated to oil and gas, they can no longer be used for hydrogen or green ammonia, even for pilot projects. This is precisely why a comprehensive approach across all energy resources is necessary to understand how to free up capital," he emphasized.